There are multiple ways to earn crypto nowadays, which includes trading, staking, lending for profit, and holding a crypto for an extended period before selling it, among other options. However, these methods require risking money, something that others might not be comfortable doing.
What if there is an option to earn crypto without jeopardizing hard-earned funds? You might think of it as a scam as it is too good to be true, but yes, earning crypto without risking your money is possible through a cryptocurrency faucet.
In this article, we will be discussing what is a crypto faucet and how they work in the crypto space.
Defining Crypto Faucet
Crypto faucets are websites or applications where you earn crypto rewards by completing specific tasks. These platforms give free crypto for performing easy tasks like playing games, watching videos and ads, and solving captcha or puzzles.They’re given the name “faucets’’ because the rewards are small, just like the droplets of water dripping from a leaky faucet. However, in the case of crypto faucets, tiny amounts of free or earned cryptocurrency are sent to a user’s wallet.
Crypto faucets are certainly not a get rich quick scheme as rewards rely on the complexity of the task — the simpler the task, the lesser the reward. Websites or apps usually offer a minimum payout threshold to save transaction fees. Once the threshold is reached, rewards are then deposited into the user’s wallet.
The purpose why crypto faucets exist is to help cryptocurrency reach mass adoption faster without the involvement of money to start. The idea behind this is to give free cryptocurrencies to people so they would take the time to learn about digital assets and hopefully invest the rewards they earn wisely.
The first crypto faucet was launched in 2010 by Gavin Andresen, a cypherpunk and Bitcoin developer. His goal was to spread awareness about Bitcoin during the time. This made it easier to acquire bitcoin since crypto wallets do not exist yet. Andresen gave bitcoins (worth only pennies at the time) out for free to those who completed a simple captcha. With time, more cryptocurrencies were created, and creating faucets became a standard among developers to gain traction on the space and attract more users to their platforms.
How does Crypto Faucet work?
Crypto faucets are generally made to be simple and user-friendly. Users must sign up for an account with the crypto faucet platform first. There are also dedicated crypto faucet sites and apps that specialize in offering free crypto to users who complete simple tasks. In both cases, users should have their crypto wallets to receive the rewards and may sometimes be asked to verify their identity.
Once an account is created, users need to complete tasks that include, but are not limited to, watching videos, reading articles, watching ads, playing games, and taking quizzes or surveys. The platform can also ask users to refer friends to earn bonuses. These tasks are relatively straightforward and risk-free, and most people would have no problem completing them. However, in some cases, these tasks can be time-consuming and may require honest efforts to complete.
Upon completing the required tasks, users are rewarded with small crypto amounts. However, if you use a faucet consistently, the rewards can compound over time and reach more meaningful amounts. Note that some websites and apps may require users to accumulate their rewards to a minimum amount before they can cash out (for example, $5 worth of crypto at a minimum).
Advantages of Crypto Faucets
Free crypto
As you now know, crypto faucets give out tokens for free. All you need to do is complete simple tasks. Unlike trading and investing, which require you to take financial risks, crypto faucets only require your time. The more time you commit to a faucet, the greater the reward.
Unlimited earnings
There is often no limit to the number of times you can earn from a faucet. Usually, the amount of cryptocurrency you earn is based on the number of tasks you complete.
Learning crypto without risking your money
Faucets were primarily created to make people aware of cryptocurrencies. It is an easy way to get started with crypto. Furthermore, you can pay for things with the amount earned and experiment with new ways to use your tokens at no risk.
Disadvantages of Crypto Faucets
Fraudulent faucets exist
Some faucets refuse to pay users even after completing their tasks. Some might even block your access once you reach the payment threshold. In addition, fraudulent websites posing as faucets can infect your computer with malware.
Always research the faucet before using it to determine if it’s safe. Check out its online communities and reviews, and if a faucet has many positive comments, it could be worth using. Remember, though, the reviews could also be manipulated!
Time consuming
The rewards from crypto faucets do not often equate to work done and the time and energy consumed. In some cases, you might need to spend a couple of hours just to receive a small amount of crypto.
Repetitive tasks
Unless you have a tolerance for doing the same task over and over again, this shouldn’t be a disadvantage for you. There are only so many tasks you can do before you get bored, making the entire process worth it.
Final Thoughts
Digital currency isn’t going anywhere.The government and banks are now becoming more open to the idea of investing in digital currencies, as well as the general public. Some wealth managers nowadays are advising their clients on investing in crypto assets, apart from the traditional assets they already have, as part of a diversified portfolio. If you don’t want to risk your hard earned money but still want to understand the inner workings of cryptocurrencies, start your journey today with crypto faucets.
Keep in mind that these platforms require honest participation as you need to spend a lot of time carrying out tasks to make money. Thus, it cannot be said to be a source of passive income. Considering the amount of time spent to earn so little, some will see it as a total waste of time. But if you are eager to learn about crypto, then crypto faucets are for you!
